1. Webinar Forrester’s Customer Experience Index, 2013
Megan Burns, Principal Analyst
January 24, Call in at 12:55 p.m. Eastern time

2. Agenda
What is Forrester’s Customer Experience Index?
What’s changed in this year’s Index?
What were the overall results, by industry and by company?
How can you use this data to support customer experience efforts?

3. Agenda
What is Forrester’s Customer Experience Index?
What’s changed in this year’s Index?
What were the overall results, by industry and by company?
How can you use this data to support customer experience efforts?

4. Forrester’s Customer Experience Index
An annual benchmark of the quality of the customer experience delivered by large US companies in 14 industries.

5. How customers perceive their interactions with your company

6. How was the data collected?
Online survey
More than 7,500 consumers
October 18–29, 2012

7. Forrester’s Customer Experience Index
Thinking of your interactions with these firms over the last 90 days . . .
Enjoyable
How enjoyable were they to do business with?
Easy
How easy were they to do business with?
Meets needs
How effective were they at meeting your needs?

8. Customers rate Customer Experience Index questions on a five-point scale
Didn’t meet any of my needs (1)
Met all of my needs (5)
Very difficult (1)
Very easy (5)
Not at all enjoyable (1)
Very enjoyable (5)
Source: January 4, 2013, “Executive Q&A: Forrester’s Customer Experience Index” Forrester report

9. How is the index calculated?
At least 100 consumer respondents per brand
Percentage 4s and 5s — percentage 1s and 2s
Average of the three individual scores

10. How is the index calculated? (cont.)
Example: ACME Corporation
Chose 4 or 5
Chose 1 or 2
Net score
82% 4%
78%
Thinking about your recent interactions with these firms, how effective were they at meeting your needs? (“Meets needs” criteria)
Chose 4 or 5
Chose 1 or 2
Net score
81% 1%
80%
Thinking about your recent interactions with these firms, how easy was it to work with these firms? (“Easy to do business with” criteria)
Chose 4 or 5
Chose 1 or 2
Net score
75% 1%
74%
Thinking about your recent interactions with these firms, how enjoyable were the interactions? (“Enjoyability” criteria)
CXi score: 77

11. Agenda
What is Forrester’s Customer Experience Index?
What’s changed in this year’s Index?
What were the overall results, by industry and by company?
How can you use this data to support customer experience efforts?

12. 2013 brought minor changes Kept what worked in 2012
Adjusted company lists
Added rental car companies

13. Agenda
What is Forrester’s Customer Experience Index?
What’s changed in this year’s Index?
What were the overall results, by industry and by company?
How can you use this data to support customer experience efforts?

14. Things are moving at a snail’s pace.

15. We break the landscape into five buckets
Excellent (85 and above)
Good (75 to 84)
Okay (65 to 74)
Poor (55 to 64)
Very poor (Below 55)

16. Most brands still rate “OK” or worse
64%
Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

17. Brands are trending toward mediocre
Base: 154 North American brands scored in Forrester’s Customer Experience Index, 2013 and 160 North American brands scored in Forrester’s Customer Experience Index, 2012; Source: North American Technographics® Customer Experience Online Survey, Q (US) and North American Technographics Customer Experience Online Survey, Q (US)
Note: Percentages may not total 100 because of rounding.

18. Industry rankings didn’t change . . .
2013
2012
Retailers (82)
Retailers (81)
Hotels (79)
Hotels (76)
Parcel delivery/shipping (77)
Parcel delivery/shipping (75)
Consumer electronics manufacturers (74)
Consumer electronics manufacturers (73)
Insurance providers (73)
Insurance providers (71)
Investment firms (73)
Investment firms (70)
Banks (71)
Banks (70)
Credit card providers (70)
Credit card providers (67)
Rental car providers (68)
Airlines (67)
Airlines (66)
Wireless service providers (65)
Wireless service providers (63)
TV service providers (58)
TV service providers (56)
Internet service providers (57)
Internet service providers (56)
Health insurance plans (56)
Health insurance plans (55)

19. . . . but some competitive dynamics did
Investment firms (2012) 15 62 77
Investment firms (2013) 22 61 83
Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

20. Vanguard leapfrogged its competitors
CXi 2013
CXi 2012
Change
Vanguard 83 76 +7
Fidelity Investments 72 +4
Edward Jones 75 +3
Morgan Stanley Smith Barney 77 -2
ING ShareBuilder 74 66 +8
TD Ameritrade 73
Merrill Lynch 70 +2
Charles Schwab 71 69
E-Trade 65
A credit union 62
Wells Fargo Advisors 61 -1
Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

21. Vanguard leapfrogged its competitors
CXi 2013
CXi 2012
Change
Vanguard 83 76 +7
Fidelity Investments 72 +4
Edward Jones 75 +3
Morgan Stanley Smith Barney 77 -2
ING ShareBuilder 74 66 +8
TD Ameritrade 73
Merrill Lynch 70 +2
Charles Schwab 71 69
E-Trade 65
A credit union 62
Wells Fargo Advisors 61 -1
Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

22. Wireless scores stretched at both ends
Wireless service providers (2012) 12 61 73
Wireless service providers (2013) 22 55 77 66
AT&T
Verizon
Sprint
Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

23. But who won?

24. New in 2013: CXi Award of Excellence
Insert image of web badge here.
Your company name here!

25. Congratulations to this year’s winners!
Marshalls (89)
Courtyard by Marriott (88)
Sam’s Club (87)
Target (86)
Amazon (85)
USAA (bank) (85)
Rite Aid (85)
Costco (85)
Lowe’s (85)
TJ Maxx (85)
JCPenney (85)
Kohl’s (85)
Marriott Hotels & Resorts (85)
Note: Bold indicates brands that also scored “Excellent” in the 2012 Customer Experience Index.

26. Value brands continue to perform well
Marshall’s (89)
Courtyard by Marriott (88)
Sam’s Club (87)
Costco (85)
TJ Maxx (85)
Kohl’s (85)
Choice Hotels (84)
Hampton Inn/Suites (83)
Southwest Airlines (81)
JetBlue Airways (78)

27. Financial services firms led the “most improved” category in 2013
CXi
2013
2012
Change from 2012 to 2013
US Bank (credit card provider) 70 54
+16
US Bank (bank) 72 61
+11
SunTrust Bank 78 69 +9
TD Bank 77 68
Source: January 15, 2012, “The Customer Experience Index, 2013” Forrester report

28. Agenda
What is Forrester’s Customer Experience Index?
What’s changed in this year’s Index?
What were the overall results, by industry and by company?
How can you use this data to support customer experience efforts?

29. Benchmarking and basic diagnostics
Whose experience is this measuring?
Where are we versus the competitors?
Does that match our customer experience strategy?
Where are we strongest, where are we weakest?
Which experiences does this reflect?
Why did we go up (or down) this year?

30. Example: ACME Corp Analysis
Customer Experience Index, 2013

31. 53 75 – 84  Good 85+  Excellent 75–84  Good 65–74  Okay
55–64  Poor 53
< 55  Very poor

32. Digging deeper into the overall score
Meets
needs
65%
Easy
51%
Enjoyable
44%
Base: US online consumers that have interacted with ACME Corp; Source: Sample data for illustrative purposes only

33. Which criteria went up or down?
Meets needs
Easy
Enjoyable
Total score
2013
65% (-3)
51% (-10)
44% (-3)
53 (-6)
2012
68% (-7)
61% (-9)
47% (-6)
59 (-7)
2011
75%
70%
53% 66
Source: Sample data for illustrative purposes only 33

34. Meets needs Easy Enjoyable +10 +10 +1
Example: Marshall’s
Overall change: +7
Meets
needs
Easy
Enjoyable
+10
+10 +1
Base: US online consumers that have interacted with Marshall’s in the prior 90 days; Source: January 15, 2013, “The Customer Experience Index, 2013” Forrester report

35. Was the movement a result of worse experiences or less “wow”?
Meets needs
(Top two to bottom two)
Easy
Enjoyable
2011
73% - 8%
60% - 11%
56% - 12%
2010
75% - 7%
71% - 10%
59% - 12%
2009
79% - 4%
77% - 7%
63% - 10%
Source: Sample data for illustrative purposes only 35

36. Which interactions did people have?
Base: 400 respondents who have interacted with this brand in the past 90 days; Source: Sample data for illustrative
purposes only

37. What channels did they use to interact?
Base: 400 respondents who have interacted with brands in this industry; Source: Sample data for illustrative
purposes only

38. How did scores differ for different groups?
Business versus leisure travelers
Investible assets (e.g., affluent, mass affluent)
Employer-sponsored insurance versus self-insured (healthcare)
Chronic illness
Bundled versus not bundled telecom services
Agent versus direct insurance customers
Technology optimists versus pessimists
Gen Y versus Baby Boomers
Draft Slide08

39. There’s more to the data than just CXi
Three loyalty questions
Willingness to consider for another purchase
Likelihood to recommend
Likelihood to switch
Word of mouth dynamics
Consumer demographics
Technology attitudes

40. CXi is designed to be a springboard for additional analysis
Understand the competitive landscape
Prioritize improvement opportunities
Focus next-level research
Structure internal CX metrics
Feed data into broad ROI models

41. Not in the syndicated benchmark?
Implement your own Customer Experience Index.
Customize:
Survey population.
Detailed diagnostic questions.
Business impact variables.
“Executive Q&A: Forrester’s Customer Experience Index”
Talk to your Forrester account manager for more info.

42. Coming soon . . . even more analysis!
On my blog . . .
In my research . . .
“The State Of Customer Experience Management, 2013” (Feb/March)
“How Companies Improved Their CXi Scores, 2013” (April)
"The Business Impact Of Customer Experience, 2013" (TBD)

43. Questions

44. Megan Burns
Blog: